Copper and other base metals saw a marginal decline in today’s trading session majorly due to reintroduction of trade tensions between US-China which has directly impacted China’s growth and demand.
As per recent news, US plans to impose 25% tariff on $200 billion of imported Chinese goods after initially setting them to 10%.
Market is reacting based on the recent news and China’s manufacturing data also grew at a very slow pace. Manufacturing Purchasing Managers’ Index fell to 50.8 in July from June’s 51.0. Investors are also not taking into count the labour unrest in Chile at this point since trade tensions are weighing down heavily.
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Price forecast
All base metals are testing their support levels and there is a definite chance of a bounce-back from these levels. I believe positional buyer should still hold for positive indicators and jump in only when global trends turn green. Although, if you are ready to take some risk than this could be time to buy and hold for target of 430-431 in few weeks.
Looking at Intraday, Copper and Lead are looking good. Initiate buy in Copper above 420.50 with SL of 415.10 and target of 422. Buy lead above 146.50 with SL of 145 and target of 147.90.
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